Posts Tagged ‘Sound Money’

Unlike its big brother, gold, physical silver is coveted for both investment purposes and industrial usage. Right now, silver prices seem poised to really take-off sharply after being in a bit of a slump lately, in other words, it’s the perfect time to load up on this precious metal while it’s down. Here are some good reasons why silver should be on every investor’s radar.

Money is the anchor in a transaction, and contrasts with the subjective value placed on goods. This article explains the money side of prices, and why government currencies, unbacked by gold, are doomed to collapse. And why gold, which is the sound money chosen by markets throughout history, will retain or increase its purchasing power measured in the goods it buys over the coming years.

History shows that, if individuals have the freedom to choose what to use as money, they will likely opt for gold or silver. Of course, modern politicians and their Keynesian enablers despise the gold or silver standard. Its because linking a currency to a precious metal limits the ability of central banks to finance the growth of the welfare-warfare state via the inflation tax.

Supporters of sound money are working hard to reestablish gold and silver as money according to state law and to make sure it is treated as such in the tax code. Trading one form of money for another should not trigger any tax. There is no sales tax when customers swap their precious metals for dollars, so switching dollars to bullion should also be tax exempt.

Whatever ultimately the case, this has never been about oil prices except that they are the most visible and straddling indication between finance and economy; the money supply attempting a rebalancing in reverse of leverage that once dominated everything but no longer can fix to even slightly stable fashion. It is the representation of the structure behind the seeming cyclical.